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38 Cards in this Set
- Front
- Back
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external decision makers, historical, periodically prepared
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financial
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internal decision makers, future-oriented, prepared as needed
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managerial
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order of management
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POLC
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3 things of Sarbanes-Oxley
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OIC - oppourtunities, incentives, character
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value given up during the exchange
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cost
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outlay of cash
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out-of-pocket cost
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cost of not doing something
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opportunity cost
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traced directly to a specific cost object
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direct cost
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not worth the time to trace (advertising)
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indirect cost
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change in total in direct proportion to change
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variable cost
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does not change by activity level
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fixed cost
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example of fixed cost
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salary
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example of variable cost
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wages
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influence a decision - differ between alternatives
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relevant cost
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not influence a decision
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irrelevant cost
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all costs incurred to produce a physical product
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manufacturing cost
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running business and selling the product
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nonmanufacturing cost
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period cost
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non manufacturing cost
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product cost
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manufacturing cost
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direct costs
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materials and labor
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indirect cost
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manufacturing overhead
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prime cost
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direct cost
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conversion cost
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direct labor and overhead (raw materials to finished goods)
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2 non-manufacturing costs
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selling and administrative
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necessary to get order and deliver product
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selling
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executive and clerical costs
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administrative
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costs incurred in the past (not relevant)
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sunk costs
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order of inventory accounts
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raw materials, work in process, finished goods
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customize and unique products
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job order costing
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each unit is identicaal to the next
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process costing
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hours worked (direct labor hours)
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cost driver
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calculate predetermined overhead rate
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estimated manufacturing overhead cost / estimated allocation base
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calculate overhead for each job
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P.O.R. x actual cost driver
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calculate applied
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P.O.R. x actual usage
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actual > applied
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underapplied
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actual < applied
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overapplied
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decreases cost of goods sold
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overapplied
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increases cost of goods sold
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underapplied
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